The financial year 2016-17 marks a milestone in the journey of Jindal Stainless Limited(JSL); for the company declared net profit for the first time in its history. It's a storyof turnaround for JSL. Ever since the commencement JSL operations in Jajpur Odisha in2011 the company has come a long way in stabilising and continuously improvingperformance on all fronts. Our teething problems are behind us and JSL has set the ballrolling for profitable growth.
Our turnaround is evidenced both in our operational and financial success. For thefirst time the plant reached a capacity utilization level close to 90% by producingabout 7.3 lakh tonnes of stainless steel. This is a marked improvement over FY 2015-16capacity utilization of 75% with a production level of about 6 lakh tonnes. JSL'sstandalone gross revenue for the financial year ended on 31st March 2017 increased byabout 27% over FY 16 from Rs 7028 crore to Rs 8957 crore. Our earnings beforedepreciation interest exceptional items and taxes (EBIDTA) nearly doubled to Rs 1107crore as compared to Rs 521 crore in FY 1516 a jump of 112%. Your company has shown a netprofit of Rs 58 crore as against a loss of Rs 559 crore in FY 15-16.
JSL was able to tide over difficulties in the preceding couple of years with the activesupport and collaboration of our consortium of lenders and bankers. We owe them a debt ofgratitude for their backing in all ways possible. They approved our Asset MonetisationPlan (AMP) which resulted in creation of three new companies. Apart from financialbalancing the AMP also helped improve our product offering and operations.
Our success can chiefly be ascribed to a multi-pronged improvement strategy driven bya force of motivated and talented employees. Progress made in logistics operationssourcing energy efficiency and financial leverage worked in tandem to bring about acomplete transformation. During the year we commissioned a railway siding within theplant to lower freight costs and dependence on local transporters. This in turn led tofaster movement of raw materials and finished goods. Internal improvements such as higheryields increased power savings and better packaging met the twin goals of costoptimisation and customer delight. Our foray into critical strategic sectors such asnuclear fusion reactors and oil & gas expanded our footprint in the Indian and globalmarkets. A conducive local environment in Jajpur Odisha played an instrumental andharmonious role in effecting such growth.
Policies of Odisha Mining Corporation Ltd for chrome ore have to be conducive for thedevelopment of ferro-chrome industry. Currently the units suffer due to non-availabilityof sufficient chrome ore as well as frequent volatility in prices. Furthermore shortageof coal puts pressure on power generation and pushes up power costs. In the past fewmonths coal prices have also gone up adversely affecting the health of power plants. Weare hopeful to find solutions to these issues with the support of authorities concerned.
The Indian stainless steel sector is slated to grow at a compound annual growth rate of7.5% over the next decade. Sectors like ART (Automobile Railway & Transportation)ABC (Architecture Building & Construction) process industry and defence are expectedto fuel growth in the stainless steel industry. While the future prospects are teemingwith opportunities there remain concerns over low priced and substandard imports fromcountries like China. Measures taken by the Government of India to check dumping have beenrendered ineffective as importers are finding new ways to sidestep laws. Challengesnotwithstanding JSL is prepared to meet the future head-on. Our tireless efforts tomaximise operational efficiency will continue in full steam. We are prepared to enhanceour capacity of cold-rolled products to further improve customer expectations. I amconfident that our capable soldiers would continue to generate value for all ourstakeholders.
Future will belong to new ideas and new technologies. It will belong to those who willbe able to predict the direction of growth and customize their offerings to aid thatprocess. Speed & innovation will be the two integral pillars for any business toexpand its horizon whilst retaining its base. I am confident that JSL will meet andsurpass all expectations as we go ahead. The company has embarked on a new journey torealize our Vision -Improving lives through trustworthy and innovative stain-lesssolution. I am confident that this vision will find manifestation in the lives of ourstakeholders.
With the hope that the best is yet to come I convey my gratitude to all ourstakeholders for their trust and continued support in us.